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SECURITIES
 6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
SECURITIES

NOTE 2 – SECURITIES

 

The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows:                         

 

       June 30, 2019     
       Gross   Gross     
(Dollars in thousands)  Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
Equity securities  $2,502   $634   $(23)  $3,113 

 

        December 31, 2018      
         Gross    Gross      
(Dollars in thousands)   Amortized    Unrealized    Unrealized     Fair 
    Cost    Gains    Losses    Value 
Equity securities  $2,502   $459   $(114)  $2,847 

 

The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:                                 

 

     June 30, 2019     
       Gross   Gross     
(Dollars in thousands)  Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
U.S. Government and federal agency  $30,065   $23   $(18)  $30,070 
U.S. Treasury   1,993    9    —    2,002 
State and municipal   99,514    2,371    (12)   101,873 
Mortgage-backed   24,419    656    (3)   25,072 
Corporate   2,647    25    (5)   2,667 
Foreign debt   500    —    —    500 
Trust preferred securities   500    —    —    500 
Total  $159,638   $3,084   $(38)  $162,684 

 

     December 31, 2018     
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
U.S. Government and federal agency  $34,079   $1   $(551)  $33,529 
U.S. Treasury   1,992    —    (45)   1,947 
State and municipal   104,317    544    (933)   103,928 
Mortgage-backed   21,654    126    (205)   21,575 
Corporate   5,147    1    (46)   5,102 
Trust preferred securities   500    —    —    500 
Asset-backed securities   21    —    —    21 
Total  $167,710   $672   $(1,780)  $166,602 

ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the three- and six-months ended June 30, 2019 or in the same periods in 2018. ChoiceOne believes that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues.

 

Presented below is a schedule of maturities of securities as of June 30, 2019, the fair value of securities as of June 30, 2019 and December 31, 2018, and the weighted average yields of securities as of June 30, 2019:

 

   Securities maturing within:           
                        Fair Value    Fair Value 
    Less than    1 Year -    5 Years -    More than    at June 30,    at Dec. 31, 
(Dollars in thousands)   1 Year    5 Years    10 Years    10 Years    2019    2018 
                               
U.S. Government and federal agency  $21,048   $7,025   $1,997   $—   $30,070   $33,529 
U.S. Treasury notes and bonds   —    2,002    —    —    2,002    1,947 
State and municipal   12,503    51,177    36,244    1,949    101,873    103,928 
Corporate   —    2,667    —    —    2,667    5,102 
Foreign debt   500    —    —    —    500    — 
Trust preferred securities   500    —    —    —    500    500 
Asset-backed securities   —    —    —    —    —    21 
     Total debt securities   34,551    62,871    38,241    1,949    137,612    145,027 
                               
Mortgage-backed securities   16    19,400    5,656    —    25,072    21,575 
Equity securities (1)   —    —    977    2,136    3,113    2,847 
Total  $34,567   $82,271   $44,874   $4,085   $165,797   $169,449 
                               
    Weighted average yields:            
    Less than    1 Year -    5 Years -    More than           
    1 Year    5 Years    10 Years    10 Years     Total       
U.S. Government and federal agency   2.00%   2.33%   2.73%   —%   2.12%     
U.S. Treasury notes and bonds   —    1.85    —    —    1.85      
State and municipal (2)   2.61    2.82    3.20    0.65    2.89      
Corporate   —    2.66    —    —    2.66      
Foreign debt   2.27    —    —    —    2.27      
Trust preferred securities   6.00    —    —    —    6.00      
Mortgage-backed securities   4.45    3.09    3.07    —    3.08      
Equity securities (1)   —    —    4.51    —    1.22      

 

(1) Equity securities are preferred and common stock that may or may not have a stated maturity.

 

Following is information regarding unrealized gains and losses on equity securities for the three- and six-month periods ending June 30:

                 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2019   2018   2019   2018 
                 
Net gains and losses recognized during the period  $80   $26   $266   $58 
Less: Net gains and losses recognized during the period on securities sold   —    —    —    9 
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date  $80   $26   $266   $49